The new credit manager of Kay’s department store plans to

The new credit manager of Kay’s department store plans to liberalize the firm’s credit policy. The firm currently generates credit sales of $575,000 annually. The more lenient credit policy is expected to produce credit sales of $750,000. The bad debt losses on additional sales are projected to be 5% despite an additional $15,000 collection expenditure. The new manager anticipates production and selling costs other than additional bad debt and collection expense will remain at the 85% level. The firm is in the 34% tax bracket.,A. If the firm maintains its receivables turnover of 10times, how much will the receivables balance increase?,B. What would be Kay’s incremental after-tax return on investment?,C. Assuming additional inventory of $35,000 is required to support the additional sales compute the after-tax return on investment?,

Lucy has $900,000 to invest and she wants a portfolio beta of

Lucy has $900,000 to invest and she wants a portfolio beta of 1.2. The S&P 500 has an expected return of 18% and the standard deviation is 30%. The risk-free return is 5%. She plans to put her money in the S&P 500 and T-bills. What is the expected return (in %) and standard deviation of her portfolio?

Could you answer the following multiple choice

Could you answer the following multiple choice questions?,, ,Question: A cause-effect diagram is used in which of the following phases? ,,,A,The open phase,,B,The narrowing phase,,C,The close phase,,D,The decision phase,, ,Question: When the null hypothesis contains an equal sign, ___________. ,,,A,The hypothesis test has two tails (or rejection regions),,B,The alternative hypothesis contains a “not equal to” sign,,C,It can be rejected by the test statistic being significantly large or small,,D,All of the above,, ,Question: The chi-square distribution is ____________. ,,,A,Bell shaped,,B,Bimodal,,C,Level,,D,Skewed,, ,Question: According to the Theory of Constraints, what is the goal of a company? ,,,A,To increase sales,,B,To decrease costs,,C,To make money,,D,To increase quality,, ,Question: Which of the following statements is MOST correct? ,,,A,If “r” is greater than “1”, there is a positive correlation,,B,If “r” is less than one, there is a negative correlation,,C,If “r” is less than one, but greater than 0, there is a positive correlation,,D,If “r” is a negative number, there is a negative correlation,, ,Question: A salesman enters a food-processing facility and claims that his new juice box filling machine can save the company money, because he is 95% confident it has less variation from the nominal setting than the company’s current machine. A random sample of 25 juice boxes from the salesman’s machine yields a standard deviation of 0.09 ounce. A random sample of 16 juice boxes from the company’s current machine yields a standard deviation of 0.13 ounce. What can we conclude? ,,,A,The salesman is correct. We can say with 95% confidence that his machine has less variation from the nominal setting than the company’s current machine,,B,The salesman may be correct. It is not possible to prove he is correct, but indications are that his machine has less variation from the nominal setting than the company’s current machine,,C,We cannot show that the salesman is incorrect. We cannot prove that he is wrong, but indications are that the company’s machine has the same variation as the salesman’s machine,,D,The salesman is incorrect. We cannot say with 95% confidence that the salesman’s machine has less variation from the nominal setting than the company’s current machine,, ,Question: A company wanted to know if a special gas additive truly (and significantly) affected the gas mileage in their company vehicles. Use the data below to determine whether or not the additive significantly affected gas mileage. ,, ,,,A,Yes, because the T-statistic of 3.125 exceeded the T-critical value of 2.365,,B,Yes, because the T-statistic of 4.51 exceeded the T-critical value of 2.365,,C,No, because the T-statistic of 0.563 failed to exceed the T-critical value of 2.365,,D,Yes, because the T-critical value is 1.895,

Grim Enterprises is considering a new product line that requires

Grim Enterprises is considering a new product line that requires a new machine. It will cost $24,000,000. It will be fully depreciated to a zero book value on a straight line basis over 3 years. The project will generate $75,000,000 in sales each year for 3 years. Operating costs are 81% of sales per year for 3 years. Grim will have $800,000 annually in interest expense as part of the financing. The tax rate is 40%. Grim estimates the unlevered cost of capital as 14%. Note: Costs do not include depreciation or interest expense. ,a. Find the base-case net present value (NPV). ,b. Suppose the project will be financed with $10,000,000 in bonds. The bonds have a 3-year life, a coupon rate of 8% and a yield of 8%. The remaining funds will come from retained earnings. Find the adjusted present value (APV). ,